Market report

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London wheat closed up c. £1.40 for the week, ex farm prices reaching highest levels since before harvest.Demand to the north and feed industry; wheat usage in feed industry july – feb is up 2.7% above last year’s record pace; barley + 25%!Stronger sterling increases import possibilities and with smaller crop (14 m.t?) import values will have greater influence than export values.

Matif wheat hit a high last Monday before falling, which is impressive considering the slow pace of exports.

US markets fell on Friday due to a combination of profit taking and analytical reasons. Brazilian soya at its highest level since August 2016 as Chinese demand intensifies (US trade threats) and drought in Argentina; Brazil forecast record harvest. Corn and Kansas wheat both bounced back from resistance levels of 1 year high.

Wheat in Europe, Russia and Ukraine is generally not threatened by significant weather, although wet conditions in Europe have prevented some inputs being applied.

Rouble weakness provoked by current conflict has made Russian wheat even cheaper in world markets, but Russian growers maybe reluctant sellers not wanting to be paid in currency losing value.